Verizon to extend phone-upgrade waiting period

April 12, 2013
by Peter Svensson

(AP)—Verizon Wireless, the country's largest cellphone carrier, is extending the time it takes to earn a subsidized phone upgrade from 20 months on contract to 24 months.

The move will save Verizon money, since it subsidizes each new smartphone by as much as $400 to get the price down to $199 or lower. With less frequent phone upgrades, it will pay out less in subsidies.

In a statement on its website, Verizon said the move aligns its policy with the typical length of a phone contract, and with the way people buy new phones. The change takes effect with contracts expiring in January.

The change is also reflects the popularity of expensive phones. Verizon subsidized upgrades after just 13 months until January 2011, when it introduced the 20-month period.

(AP) -- Verizon Wireless on Thursday announced it's opening up access to smart phones for customers who prepay for service, such as people with poor credit and those who don't want to be tied down by long-term contracts.

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2 comments

Big step in the wrong direction. These intervals need to be growing shorter, the tech is moving too fast for 20 month spans. I would think maybe 13 would be the sweet spot right now but even this wouldn't keep up with things over the next two years. Not sure how to make it economically feasible for Verizon, but T-Mobile seems to have a good plan by contrast. Want a newer phone? Upgrade anytime, just pay off the balance of the phone you are currently paying off with your monthly bill. Once paid, your bill is reduced and if you want a new phone go ahead. Makes perfect sense to me. 24 month intervals do not.